When you find yourself in a situation where just a few hundred dollars separates you from a rare purchasing opportunity, an urgently needed tool or piece of equipment, or the full confidence in the safety and well-being of your family in the event of adversity, you may be wondering where to go to for these much-needed funds.
If we only focus on what is legal and advisable, and thus skip the idea of pawn shops, large loans from friends and family, pay day loans, credit card loans and so on, there are not so many options left for us to consider.
A traditional loan or line of credit from a large financial institution may be one option you are considering, but it is important to understand that banks and credit unions take their time in processing and reviewing loan applications: you may thus find yourself in the state where you have invested a significant amount of time and effort into obtaining a bank loan but have received nothing.
One more factor that makes the picture even more difficult is the credit rating – what if your credit rating is worse than desirable? The banks will have no second thoughts about rejecting your loan application.
A very different option that is becoming more known recently is obtaining an auto title loan.
What is an auto title loan?
The auto title is an official document and status that confirms that you have full ownership of a vehicle, such as sedan, truck, SUV, ATV, RV or boat. This title can be used as collateral in order to obtain the financing that you require. Importantly, because the collateral is quite substantial, a credit check is not normally required for this type of loan, thus an auto title loan is the perfect choice for anyone that has problems with their credit history for whatever reason.
Another major positive side of the auto title loans is that they are usually very easy to obtain, as long as your documents are in order and the loan company that you apply to know their business well. As the auto title is checked through a centralized system, the review of your auto title loan application should not take more than 20 minutes to half an hour.
As you can see, overall, an auto title loan is an excellent product that is leaps ahead of a traditional bank loan in terms of the speed at which you can obtain it and the ease of the entire application and review process.
Some points to keep in mind
As the auto title loan business becomes more developed, so, too, are the attempts to misuse this field in order to trick people out of their hard-earned money. Some points to remember when shopping around for the best auto title loan provider in your area would be openness and directness, fees, service guarantees and access to vehicle.
Openness and directness are the signs of honesty on the part of the service provider—if there are gray areas in the company’s policies or procedures that are not sufficiently clarified when asked, beware and look elsewhere. The process that it takes for you to apply for and obtain the loan, and then repay it and get your auto title back, should be as straightforward and clear as possible.
Fees should be outlined right away as well, and there should be a reasonable guarantee on how fast the application review process takes, how long it will be until you receive your money when you are approved, and what the repaying process is. If the company doesn’t provide clear and verifiable answers to any of these important questions—why would you trust them with your auto title and your money?
One more thing: be sure that the loan provider you choose doesn’t take your car from you when you obtain the loan, or it defeats the very purpose of a loan that is only supposed to use the car as collateral to the loan at a time of temporary financial need.
Good options are out there
Do remember that auto title loans are completely legal and thus all operations with them should be fully in the daylight, well-documented, reversible and trackable. Do your research well and you will find at least a couple of well-established auto title loan companies in your area that you can talk with about any other questions you have about this new type of financial product. Many people have gone through this process before and enjoyed it. You will too.
This article was written by Eugene. Q. Willis, a financial writer, according to whom, title loans are one of the quickest ways to get cash in an emergency.